Tariffs and penalties

1. When placing a deposit for 181 days or more,in case of early termination of deposit agreement with the depositor’s initiative after 91 days, the following deposit interest rates are calculated: 3%/1%/0,1% per annum for AMD/USD/EUR respectively for physical persons at the time of depositing at the Bank (if termination takes place earlier than 91 days, no annual interest rate is accrued).
2. The deposit sum and interest payments are made to the clients’ current banking accounts. Annual maintenance fees are charged from the clients’ current banking accounts according tariffs and rates set by the bank.

Information on interest rates

1. Annual interest rate is the interest rate set by the deposit Agreement on an annual basis, at which the interests paid to the investor are calculated.
   Interest calculation formula for this deposit product:
   (DA * I / 365 * Days) – 10% income tax, where
   
   DA – deposit amount placed
   I – simple annual interest rate
   Days – number of days for which the deposit is placed, taking into consideration paragraph 1 of article 907 of the Civil Code of RA according to which deposit interest is not accrued on the day of placement and recall of the deposit.
   Sample 1
   Validity of deposit - 366 days
   Deposit amount - 1000 USD
   Annual interest rate – 4%
   
   1000 * 4 /100 / 365 * 365 -10% = 36  USD
   
   
2. Annual percentage yield with a regular interest payment is calculated according to the following formula:
   
   APY= (1+r/n)ⁿ - 1, where
   
   APY - annual percentage yield
   r - simple annual interest rate
   n - frequency of interest sum capitalization during a year
   
   If interest is paid at the end of the term: n =1 , then
   APY= (1+0.04/1)¹ - 1,
   APY=0.04*100=4%
   

Customers’ rights protection

All the disputes or disagreement arising during the account maintenance or deposit activity period are settled by the mutual consent of the two parties. In case of a failure to reach an agreements, the investor’s rights are protected in a legal form, in cases stipulated by the law – in arbitral form as well as via financial ombudsman. Investors can protect their rights as personally as through an authorized representative.

The Bank has no right to condition the conclusion of a deposit agreement to the conclusion of an arbitration agreement.

More information

1. Interest is accrued on a daily basis.
2. Interest accrued to the deposit is subject to taxation (income tax) at the rate of 10%, according to the legislation of RA. The depositor is paid the amount after taxes.
3. If the deposit maturity term coincides with a holiday and/or the weekends, the term is the next working day
4. The deposits placed in the Bank are guaranteed by the Deposit Guarantee Fund, in accordance with the legislation of RA. The guaranteed deposit limits are as follows:
   • if deposit is in AMD – AMD 10 million,
   • if deposit is in foreign currency –AMD 5 million,
   • if a depositor has two deposits, one is in AMD, the other - in a foreign currency, and the deposit amount in AMD exceeds AMD 5 million, only the deposit in AMD is guaranteed with AMD 10 million
   • if a depositor has two deposits, one is in AMD, the other - in a foreign currency, and the deposit amount in AMD does not exceed AMD 5 million, the deposit in AMD is fully guaranteed, the deposit in a foreign currency is guaranteed at the amount of AMD 5 (Five) million and reimbursed dram-denominated bank deposit.
     All the deposits in AMD placed in the same bank are considered to be one deposit, all the deposits in a foreign currency are also considered to be one deposit. Joint deposit is a separate deposit in in the amount of the share fixed in the agreement.
5. Time deposit accounts are maintained through bank accounts which, in this case, are mandatory. Annual maintenance fees are charged according to the tariffs and rates set by the Bank and is determined by 2.4 point of maintenance agreement.